Varies
Amount varies
Tax Credit
Reduces tax liability
Rolling
No fixed cutoff
Annual tax return
Claim with year-end filing
Moderate
File with tax return
Provides a 24% income tax credit on the first $2.5 million of qualified R&D expenditures and 15% above that threshold, for R&D conducted in Arizona. Stacks with the federal R&D tax credit for significant combined benefit.
Do I qualify?
Answer the questions below to get an instant self-assessment of your fit for this program. This is informational — final determinations are made by the administering agency.
1.R&D must be conducted in Arizona
2.Credit: 24% on first $2.5M of AZ QREs; 15% above $2.5M
3.Follows federal IRC Section 41 definition of qualified research
4.Credits may be carried forward 15 years
5.Available to corporations and pass-through entities
ACA · Arizona
Provides Arizona corporate income tax credits for qualified renewable energy operations manufacturing solar, wind, geothermal, or fuel cell equipment in Arizona, creating qualifying jobs.
ADOR · Arizona
State income tax credit for businesses conducting qualifying R&D activities in Arizona. Credit equals 24% of the first $2.5 million in qualifying expenses and 15% above that threshold, mirroring the federal R&D credit structure.
DEED · Minnesota
Credit equal to 25% of investment in certified Minnesota startup companies, available to both individual and corporate investors. Certified businesses must be in technology, new proprietary products/processes, or meet other qualifying criteria. Annual statewide credit cap of $17 million.